Which of the following items is (are) contained in the common policy conditions page of the commercial package policy? I. A description of the property that is insured. II. A provision describing the insurer’s right to audit the insured’s books and records A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
A well-diversified portfolio typically has systematic risk equal to about 40% of the portfolio’s total risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Advantages of private placements do NOT include which of the following? A) lower flotation costs B) funds which are available more quickly than through a public offering C) more financing flexibility D) investor protection through extensive regulation ANSWER D
Date: September 19th, 2020
S-type corporations have all of the following advantages EXCEPT A) distributions are taxed twice, similar to corporate dividend payments. B) they are taxed as partnerships. C) all owners must be people, no corporations. D) the owners have limited liability. ANSWER A
Date: September 19th, 2020
Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest compounded annually. How much will you have in the account on your 21st birthday, just after your grandparents make their deposit? A) $79,640 B) $101,802 C) $98,016 D) $86,058 ANSWER C
Date: September 19th, 2020
While the Homeowners Flood Insurance Affordability Act of 2014 rolled-back some premium increases in the Biggert-Waters Act, it included a provision to help fund the large deficit in the National Flood Insurance Program. The provision to help fund the deficit is A) a surcharge on every new home that is constructed in a flood plain. […]
Date: September 19th, 2020
Total risk equals systematic risk plus unsystematic risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Valerie’s home does not qualify for coverage under a standard homeowners policy. Valerie would like to have “open-perils” (all-risks) coverage on her dwelling and named-perils coverage on her personal property. Which of the following policies should Valerie purchase? A) Dwelling Property 1—Basic Form B) Dwelling Property 2— Broad Form C) Dwelling Property 3—Special Form D) […]
Date: September 19th, 2020
An understanding of the role of capital markets is one of the fundamental concepts that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of the capital markets in raising long-term funds. D) better […]
Date: September 19th, 2020
Which of the following statements about mobile home insurance under the ISO program is true? A) The mobile home is insured on a replacement cost basis, but actual cash value coverage can be added by endorsement if it is more appropriate. B) There is no coverage available for “other structures.” C) Built-in, permanently attached furniture […]
Date: September 19th, 2020
